During 2018 Trombley Incorporated has the following inventor

During 2018, Trombley Incorporated has the following inventory transactions Number of Units 28 Date Jan. 1 Mar. 4 Jun. 9 Nov. 11 Unit Cost $ 30 29 28 26 Transaction Beginning inventory Purchase Purchase Purchase Total Cost $ 840 957 1,064 988 38 38 137 $3,849 For the entire year, the company sells 101 units of inventory for $38 each.

Solution

Weighted average cost of goods available for sale Cost of goods sold ending inventory cost units per unit available units Average COGS units Average COGS cost pu cost pu Beginning inventory 28 30 840 Purchases: 4-Mar 33 29 957 9-Jun 38 28 1064 11-Nov 38 26 988 total 137 3849 101 28.09 2838 36 28.09 1011 Sales revenue 3838 Gross profit 1000 average cost per unit = 3849/137 28.09